The Future for Governments and Central Banks

We now see governments like the US and UK espousing Global G20 responsibilities to come together and form an uniformed Global Approach to the crisis. Well, will it work? No, is the simple answer. They still don't get it, by that I mean the governments.

The nearest this group have come to sharing a single philosophy, was, in their Central Bank's attempts to share a single International Market Development Monetary Policy, and look where that has got the world. The UK and the US believe they have the golden sword, which will cut through this crisis. But, will the G20 pull their swords and join the crusade.

If they do, will the actions we've seen to date, which have not resolved the underlying issues in the system continue. We continue to see the adoption of the system's collapse, moving from those responsible, to the people. The nature of the system is now developing into a, 'we must be helped or you government's are to blame' for our collapse. We, as individuals, must continue to prepare for the changes that are coming and deleverage ourselves from the our dangerous debts, were possible, which will drowned some of us. Here are the IF statements, you need to consider. IF Interest Rates went up to 12 -15% over the next 2-3 years, could you survive? IF Inflation went up even hirer than that figure in the same period, do you have enough disposable income to cover that lost value, in real income terms. IF you lost 30% of your annual income, due to unemployment in the household, would your present expenditure go into free-fall?

Think about these questions and consider alternative ways of surviving. Because, whilst the first two are not with UK or the US, or in Europe and China, as well as other economies, the last one has already hit millions of homes and will hit millions more over the coming years.

As the Fiat Currency hits the streets over the next year or so and continuing government intervention takes place, the other two IF's will follow, it’s as obvious as night following day and vice versa.

I have another point or suspicion, based on the present climate and the developing situation, that is, that, we are moving toward the next stage of the crisis, but, not before a contradictory period. This Fiat Currency and Government intervention are, and should be, expressing themselves. Whilst the people are unconfident, and Central, Commercial and Local Banks, are going under transfusions we will only see miner improvements. But, these causations will pick up in momentum as false confidence returns. As this happens, the expansion of the other two IF's will be brought about, following the next stage of the collapse; when people start to believe things are beginning to improve.

There are still more convulsions ahead, which are further warnings of the depth of the systemic crisis. I believe a major Banking Group will fall. Unless of course, the Bank's Government may continue to through their people's future at the issue. I believe this collapse will take out hundreds of Associative banks and in one of the G20 economies most likely one of the top 5. This will push us into the next stage of the systemic crisis. So, look out in September, October of 2009, history has a great way of repeating itself.